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Mold Issues for Buyers are Mold Issues for Lenders!

Now that the lenders are becoming much more picky about who they lend to, they are also becoming much more picky about the house that will be their collateral. So just know that when you put your house on the market, it is becoming so much more important to do a pre-listing inspection by a really good certified inspection company who will be able to identify radon, mold, and major mechanical issues. PRE-LISTING INSPECTION ON ALL HOUSES, NOT JUST OLD HISTORIC HOUSES WILL HELP THE DEAL GO FASTER!!!!  See the Benefits of a Pre-Listing Inspection.

I always used to just recommend these pre-listing inspections to my sellers of old historic homes in the city but most of the suburbs in Cincinnati have homes that were built in the 1970s and may have structural issues, settlement of parts of the house that are on a slab like the garage/laundry room, mold issues, lead paint issues, old window issues, leaking roofs, badly maintained gutters and downspouts. The list is endless but the pre-listing inspection will help you to have a smooth sale and the repairs can be made prior to sale on your buck, not on the cadillac estimate of a buyer looking for a "deal".

I am just completing the sale of a house in the Sycamore School District. You would think that this would be easy right? Just get the price right and the deal will happen. My buyer is moving in from out of town, wants his family in a good neighborhood in the Sycamore School District. The first house we tried to buy had a garage/laundry room which had settled, was still settling and was undisclosed. My buyer didn't want to deal with that so we moved on to a very nice home with a finished basement on a no outlet street, a little younger so no worry about lead paint either.

Wow, the inspection revealed a roof that was ready to fail, and also radon and mold. All of it was negotiated and the mold was being taken care of when the bank got interested about the major issues that the seller is correcting. The bank decided that the mold was an issue they didn't want and denied the loan. They admitted that the buyer was great, the financial information was great, the mold was a problem they wouldn't agree to even though the mitigation has been done and we are awaiting normal test results prior to closing.

We can contest their decision but only if we jump through lots of hoops, waste more money in inspections that won't prove anything more and waste more time while my client's furniture sits in storage and he lives in an extended stay hotel. THIS IS MADNESS!

One thing I have learned from this is that inspection corrections should be made and the inspections and corrections released before the loan is submitted to underwriting. Pre-listing inspections would make all this go much quicker.  The other thing I have learned is that when basements are finished, there should be a return vent added to the furnace for the basement or there needs to be a complete vapor barrier between the final finish on the interior walls and the framing attached to the exterior walls. The reason for this is that the outside basement walls are at a temperature of about 54F and the drywall or panelling is at a temperature of about 68F. The moisture in the air at 68F will condense on the wall that is at 54F and that is a perfect place to grow mold if there is no air circulation or a vapor barrier.

The final outcome of this was that the bank saw all the final evidence that the mold had been remediated and safe levels were the found in the house. anThe bank gave us the loan. Finally my clients moved in and are happily settled, I had an email today that they love it. They will have some work to do on the house in the coming years but they will love the neighborhood and I and Gillian Meadows the mortgage lender, learnt a few things about USBank!

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